Goals in the
De-Risk Matrix

Goals represent the ambitions of stakeholders, including owners, board members, and management. Setting goals establishes an organization’s or project’s risk exposure. Organizational goals typically focus on areas like customer relations, market growth, skills, culture, innovation, safety, sustainability, ESG, operations, and finance. Project goals tend to focus on safety, timelines, costs, and quality. Goals carry commitments, personal responsibility, and clear expectations for direction, scope, and quality. These goals and their target ranges are set by the organization and overseen by the goal owner. In a business, this might be a marketing director responsible for market-related goals, while in a project, it could be a project manager overseeing quality objectives.

Steinar Hoen

Steinar Hoen is a Norwegian high jump record holder, European gold medalist, stockbroker, adventurer, investor, and now the driving force behind making the Oslo Bislett Games the world's most sustainable sports event. Throughout his career, he's worked systematically toward achieving goals, not only in the stadium but also by redefining the vision for the Oslo Bislett Games. We asked Steinar Hoen what high jumping would be like without a bar — a scenario similar to running a business or project without goals.

Discussions with Steinar Hoen and insights from the IGS methodology showed that sports and business share similarities. In sports, setting a range of goals and achieving consistency over time is key. The De-Risk Matrix brings this approach to business.

  • No Bar

    “High jumping without a bar makes no sense - not just for the jumper but for the coach, spectators, and sponsors. The same goes fr business: Without goals, there’s nothing to aim for or strive toward. I would lose assion and couldn’t sell the idea”

  • With A Bar

    “A bar provides clarity in both high jumping and business. If I don’t know the height, I can’t plan my approach. Should I use full sped at takeoff? I don’t know, and there’s a threat of injury if the height and goal aren’t clear”

  • With A Target Value

    “When I know the heightof the bar, I know what i takes to clear it. With this clarity, I can create a plan to achieve it”

  • With A Target and Threshold Value

    "When I was competing, the competition was intense, with a focus on clearing 2.4 meters. But consistent high jumps over an entire season, and across seasons, were key to winning regularly and making a living. I had more than just one big goal. From experience, I knew how high I needed to jump at different events to be successful.”

The Interval Goal Setting methodolgy

The De-Risk Matrix adopts goal intervals based on the IGS (Interval Goal Setting) methodology, drawing inspiration from how elite athletes set and achieve goals. The idea is to create a range of acceptable outcomes, providing flexibility and accommodating uncertainty.

In the 1970s, Dr. Frank O'Block and swimming coach Fred Evans helped American swimmers improve performance by introducing "motivation goals." This concept evolved into the IGS methodology, which uses past achievements to set a realistic range for future goals. Studies show that athletes using this approach reach their goals 90% of the time.

By recognizing that outcomes can vary, goal intervals allow organizations to prepare for different scenarios, helping to manage risks.

Interval Goal Setting offers several benefits:

  • Flexibility: By allowing for a range of outcomes, this approach reduces the risk of failure when specific targets aren't met.

  • Reduced Pressure: The focus on a goal range rather than a single target lessens stress on teams, fostering a more innovative environment.

  • Continuous Improvement: An upper and lower bound encourages improvement while still allowing success within the range.

  • Adaptability: This method accommodates changes in the business environment, aligning with agile practices in fast-paced industries.

  • Encourages Collaboration: By aiming for a range, teams are more likely to collaborate, creating a more inclusive and cooperative culture.

Overall, Interval Goal Setting is a practical, flexible approach to goal setting that emphasizes risk management, adaptability, and continuous improvement, offering a useful alternative to traditional methods that require exact targets.

Goal Intervals

To determine a goal's risk status, every goal is set with an interval, comprising a lower threshold and an upper target value. This range accounts for both uncertainty and expectations. Increasing both the threshold and target values incrementally can drive towards higher goals and improved outcomes, suggesting a balance between realism and progress. The range's breadth reflects the level of uncertainty.

A narrow range may limit optimization and complicate the management of conflicting goals. On the other hand, a wide range might obscure risk impacts, causing goal owners to become complacent. If the range feels too wide or too narrow, consider revisiting and adjusting it.

Target value

The upper limit, or target value, is what you aim for. It should be challenging but realistic, representing what the business or project can achieve without seeming unattainable. When you work with multiple goals, it's crucial to set target values in harmony with each other to avoid conflicts.

Threshold value

The lower limit, or threshold value, is the minimum that must be achieved. This value reflects the baseline result that justifies the effort. When setting thresholds, ensure consistency across all goals to avoid contradictions or conflicts.

Cultural aspects

When setting goal intervals, a number of factors need to be considered. Below is a brief list of cultural considerations that can be customized to fit the context, experiences, and goals of your organization.

Listening and Collaboration: Successful goal setting relies on iterative processes and collaboration. Listening to leaders and employees about uncertainties related to goals can offer valuable insights, leading to more realistic targets. This approach helps create a comprehensive perspective that matches the risk exposure necessary to achieve the desired outcomes.

Establishing Ownership: Goals set behind closed doors, then presented to the organization, often lack ownership. Involving the entire organization in the process builds trust, motivation, and a sense of ownership, leading to faster implementation. This approach might take longer but results in stronger support and momentum.

Bonuses and Ethics: Linking bonuses to goal achievement can be motivating but may also encourage unethical behavior to meet expectations. Individual performance-based bonus schemes, common in many industries, can drive opportunism and shortcuts. An emerging trend is including ESG (Environmental, Social, and Governance) goals in bonus structures, reflecting a broader focus on sustainability and ethics.

Avoiding Goal Conflicts: Setting goals involves risk exposure. It's crucial to ensure goals and their intervals don't conflict and are realistic. Collaborative, iterative processes help identify and address potential conflicts before they are implemented in the company's strategy or shared with stakeholders. Failure to meet shareholder expectations can have significant consequences.

Learning from the Past: Use historical data with caution. While it provides context, relying solely on past trends can be misleading. Keep in mind that future conditions may differ.

Time and Flexibility: When setting goal ranges, ensure there's enough time for goals to be achieved and that timeframes are clear. In competitive markets, speed can be critical to success.

Visions vs. Goals: Visions are long-term aspirations, while goals should be achievable within a realistic timeframe. Distinguish between the two to avoid confusion.

Sub-goals: Breaking a goal into smaller sub-goals, with responsibility distributed across different parts of the organization, can help maintain focus. Apply the same principles to sub-goals, ensuring they are realistic and that clear reporting processes are in place.

Benchmarking: Benchmark your goal intervals against industry standards to stay competitive. This helps avoid complacency and ensures you're aligned with broader market trends.